Wal-Mart shares have had a very poor week this week ending the week at $47.87 (having been over $50 at the start of the week) but it may be worth keeping an eye on this company’s shares because the price is starting to approach it’s long-term support line.

It’s still a little early to get involved in any long positions because the RSI hasn’t quite reached oversold levels yet but ideally we would be looking for a further drop to around $46.25.

This support line indicates the lows of February 2009 and is therefore a strong area of support. Furthermore the price hasn’t been below this level since the start of 2008, but both earnings and profits have increased since that time.

Of course it may not fall that far, but if it does then it could be a good opportunity to either take a short-term long position or think about buying Wal-Mart shares for the mid/long-term.

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(Disclaimer: All views expressed in this article are those of the author only and do not represent financial advice in any way).

Filed under: Stocks

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